In a report called “Canada's Non-Goldilocks Housing Market and the 33 Bears”, BMO chief economist Douglas Porter cited the 60 per cent increase from 2008 prices as evidence that the pessimists are incorrect about their grim projections of Canada’s housing market.
“Da Bears may some day be right, especially on the hottest markets, but getting the timing down is half the challenge, Porter told CBC News.
In defiance of forecasts made by financial institutions, real estate prices across the country have exhibited continuous growth (albeit with very slight dips along the way) since the 1990s.
However, Porter said that petitions to cool down the housing market are misplaced, as the sector’s robustness is concentrated on the most active regions.
“The Canadian housing market remains a tale of three solitudes — the uber-strength in Vancouver and Toronto (and surrounding cities in both regions), ice-cold conditions in markets exposed to oil prices, and the just-right middle markets in almost every other region,” Porter explained.
Recent figures from the Canadian Real Estate Association noted that the average price for a home in Canada now sits above the $500,000 mark—a development that a BMO economist said does not bear out the dismal predictions that have been hounding the market for years now.